LyondellBasell revenue falls short

AustenHufford

LyondellBasell Industries NV on Tuesday reported a worse-than-expected 31% slide in revenue, as its product prices remain under pressure.

The Dutch chemicals-and-polymer producer, which emerged from chapter 11 bankruptcy in 2010, provides compounds found in products ranging from electronics to construction materials and biofuels. Lyondell, with its U.S. headquarters in Houston, has benefited from lower natural gas prices that have led to lower key raw material costs, but it also has been hurt by diminished pricing power from cheaper oil.

In recent quarters, however, lower product prices have pressured revenue. For the period ended Dec. 31 the price of ethylene fell 39% compared with the year prior.

In all, the company reported a profit of $795 million, or $1.78 a share, up from $791 million, or $1.54 a share, a year before. Excluding certain items, per-share earnings were $2.20 a share.

Revenue fell 31% to $7.07 billion from a year prior.

Analysts polled by Thomson Reuters had expected adjusted earnings of $2.14 a share and revenue of $7.60 billion.

Olefins and polyolefins in the Americas, the segment that produces products such as ethylene and represents a majority of the company's bottom line, reported a 27% fall in revenue. Its intermediates and derivatives segment reported a 28% decrease in revenue. Its refining unit reported a 55% fall in revenue.

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